Also keep an eye out for evidence of any lease violation.... unauthorized occupants, unauthorized animals, tampered smoke alarms, damages, etc.In addition to checking all of the smoke alarm devices, plumbing fixtures, electrical fixtures, appliances, and operation of doors and windows, ask the tenant if there's anything that's not working or needs attention.

Is that included in addition to your regular policy?

In addition, I am sure the fact that you are so detailed with your process made it easy for the insurance carrier to find coverage & identify subrogation against the water company.  

I'm not doing any additions or demo, but will need to put in somewhere from $25-$60k of works (still waiting on the showing to get a better sense of budget). repairs will probably include renovating the hardwood, painting entire housing. redoing entire bathroom and a big portion of the kitchen, etc.

I would look into turning that 120k into 4 or 5 more properties that cash flow an additional 2-2.5k a month, thats where you missing the boat. 

The dangers of both options are obvious, and who knows when, or if, we will get back to the cap rates we have seen in the past.Just my perspective but I have maintained my minimum return requirements while exploring some additional options. 

A master bedroom, 2 additional bedrooms, small room which we considered the nursery as it is situated off the master bedroom, and a full sized bathroom.The first floor was made into an apartment for my mother as she wanted to be secured from the roomers.

I packed in a bit more info,can you see any additional tweaks or maybe other suggestions?

We have a new property under contract and are looking for additional likeminded investors to join us.

In addition to the state level Costa Hawkins repeal, there is also a local Rent Control amendment already likely to make the ballot in Sacramento.